Updated: December 30, 2025
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The cheapest car insurance company for you will depends on your driving profile and locations. Â Based on our analysis, these are the cheapest auto insurance providers by coverage type and driving profile:
What are The Best Discounts To Get the Cheapest Rates?
Combining eligible discounts cuts your monthly premium by 25% to 45% beyond the advertised base rates. State Farm's telematics program alone reduces its $121 monthly cost to $85, resulting in $432 in annual savings before factoring in other available discounts. When you layer GEICO's multi-car discount (25%) with their bundling option (25%), that $98 monthly premium falls to approximately $73—putting an extra $300 back in your pocket each year per vehicle. Travelers rewards safe drivers who bundle policies, reducing their $97 rate to roughly $75 monthly through combined savings of $288 per year.
Travelers is the most affordable full-coverage car insurance company nationwide, with average monthly premiums of $97. Drivers save $232 annually with this insurer, saving 29% compared to the national average. GEICO is the second cheapest company at $98 per month for full coverage, saving you 28% versus the national average.
Choose full coverage if your vehicle's value exceeds about $4,000, if you're financing or leasing your car, or if you can't afford to replace your vehicle out of pocket. Liability-only makes sense if your car is older or paid off and you have savings to cover repairs or replacement.
| Travelers | $97 | $1,158 | 29% |
| Geico | $98 | $1,177 | 28% |
| National General | $112 | $1,340 | 18% |
| Amica | $115 | $1,381 | 16% |
| State Farm | $121 | $1,448 | 11% |
GEICO offers the most affordable minimum coverage rates nationwide, with an annual premium of $514 or $43 per month. With GEICO, policyholders save $264 annually, with rates 36% below the national average. National General charges $579 yearly for minimum liability, resulting in annual savings of $163. Its rates are 28% lower than typical costs.
Drivers with assets to protect should consider higher liability limits like 100/300/100. The premium difference is often modest. Compare quotes for both options to see the actual cost difference before deciding.
| Geico | $43 | $514 | 36% |
| National General | $48 | $579 | 28% |
| Travelers | $50 | $601 | 25% |
| State Farm | $53 | $634 | 21% |
| Amica | $56 | $669 | 17% |
State Farm is the cheapest company on average across 18 states. GEICO's rates are lowest in 16 states. This saves policyholders up to $1,943 yearly. Rates vary widely by state and zip code so see your state below for each policy type to get the cheapest car insurance company in your location. Â Choosing the cheapest provider for the policy you need will save you up to 33% compared to the national average
| Alabama | Travelers | $47 | $86 | 1% |
| Alaska | Geico | $41 | $87 | 21% |
| Arizona | Travelers | $41 | $83 | 24% |
| Arkansas | Travelers | $41 | $89 | 8% |
| California | Geico | $39 | $91 | 24% |
| Colorado | Geico | $32 | $97 | 30% |
| Connecticut | Geico | $34 | $75 | 46% |
| Delaware | Travelers | $48 | $78 | 38% |
| District of Columbia | Geico | $86 | $152 | 30% |
| Florida | Travelers | $52 | $112 | 26% |
| Georgia | Geico | $40 | $101 | 14% |
| Hawaii | Geico | $24 | $66 | 28% |
| Idaho | State Farm | $18 | $56 | 21% |
| Illinois | Geico | $30 | $69 | 25% |
| Indiana | Geico | $33 | $64 | 8% |
| Iowa | Travelers | $28 | $66 | 9% |
| Kansas | Geico | $25 | $71 | 29% |
| Kentucky | Travelers | $47 | $94 | 18% |
| Louisiana | Geico | $54 | $156 | 21% |
| Maine | Travelers | $28 | $52 | 13% |
| Maryland | Geico | $51 | $89 | 22% |
| Massachusetts | Amica | $35 | $84 | 0% |
| Michigan | Travelers | $25 | $79 | 19% |
| Minnesota | State Farm | $33 | $94 | 4% |
| Mississippi | Travelers | $54 | $105 | 12% |
| Missouri | Travelers | $40 | $81 | 11% |
| Montana | State Farm | $19 | $85 | 34% |
| Nebraska | Geico | $27 | $68 | 0% |
| Nevada | Travelers | $57 | $105 | 24% |
| New Hampshire | Geico | $33 | $61 | 17% |
| New Jersey | Amica | $86 | $152 | 4% |
| New Mexico | Geico | $46 | $95 | 6% |
| New York | Progressive | $34 | $64 | 15% |
| North Carolina | State Farm | $24 | $56 | 33% |
| North Dakota | Geico | $28 | $61 | 9% |
| Ohio | Travelers | $36 | $75 | 1% |
| Oklahoma | Progressive | $29 | $96 | 16% |
| Oregon | Progressive | $46 | $82 | 10% |
| Pennsylvania | Travelers | $30 | $70 | 6% |
| Rhode Island | State Farm | $43 | $88 | 20% |
| South Carolina | Geico | $58 | $112 | 9% |
| South Dakota | Progressive | $14 | $55 | 32% |
| Tennessee | Travelers | $38 | $78 | 15% |
| Texas | State Farm | $41 | $93 | 25% |
| Utah | Geico | $46 | $90 | 23% |
| Vermont | State Farm | $22 | $56 | 23% |
| Virginia | Travelers | $30 | $61 | 15% |
| Washington | Geico | $39 | $96 | 12% |
| West Virginia | Geico | $42 | $92 | 28% |
| Wisconsin | Geico | $20 | $53 | 9% |
| Wyoming | State Farm | $21 | $76 | 21% |
Residents of expensive insurance markets should focus on three specific tactics. First, compare quotes from both State Farm and GEICO, as these two companies are the most affordable options across 34 combined states. Check Travelers specifically if you live in high-cost southern states like Florida, Nevada, or Mississippi, where this insurer consistently undercuts competitors by 12% to 26%. Third, request quotes from regional carriers that operate in your state, as these smaller insurers sometimes offer rates 20% to 30% below national averages in specific markets where they concentrate operations.
MoneyGeek's analysis of auto insurance shopping trends reveals that good drivers in expensive markets experience price gaps exceeding $1,200 annually between the cheapest and most expensive insurers for identical coverage, with shopping activity surging 19% year-over-year as Americans realize that loyalty can cost thousands in unnecessary expenses.
National General is the cheapest option for teens wanting minimum liability coverage, with an average monthly premium of $210. This rate is 13% cheaper than the national average. State Farm offers the lowest average monthly premium for full coverage at $444. National General follows closely for full coverage at $459 per month.
| National General | $210 | $459 | 13% |
| State Farm | $225 | $444 | 13% |
| Geico | $225 | $477 | 8% |
| Travelers | $237 | $466 | 8% |
Teen drivers have the highest car insurance rates because they lack driving experience and have accident rates three times higher than older drivers. Insurers price accordingly to account for this increased risk.Â
Finding affordable coverage for your teen requires a strategic approach. Adding your teen to your existing policy typically costs less than a standalone policy. Look for companies offering good student discounts, usually 15 to 25 percent off for maintaining good grades. Driver monitoring programs also reduce premiums for responsible teen drivers. You can also explore which are the cheapest car models to insure for teenagers.
National General is the clear leader for young adults looking for cheap coverage. This insurer offers the cheapest average monthly premium for minimum liability coverage, with rates as low as $88 monthly, 29% cheaper than the national average.
For drivers who need comprehensive and collision protection, National General is the cheapest company for full coverage, averaging just $182 per month. GEICO follows closely behind and is budget-friendly choice. It costs $94 monthly for liability and $207 for full coverage.
| National General | $88 | $182 | 29% |
| Geico | $94 | $207 | 21% |
| Travelers | $115 | $228 | 10% |
| State Farm | $123 | $253 | 1% |
Rates typically drop at age 25 when insurers reclassify your risk profile, but you can accelerate savings by maintaining a clean driving record and building continuous insurance history. MoneyGeek also analyzed the cheapest car insurance for college students and the most affordable car insurance for new or first-time drivers.
GEICO is the most affordable car insurance company for seniors who need minimum liability coverage. The average monthly premium is $83, 13% cheaper than the national average for this age group. Â For full coverage, drivers should look to National General for robust protection. Its rate of $167 per month makes it the cheapest choice by 12% compared to the national average. GEICO is also highly competitive in this category, with a monthly full coverage premium of $171.
| Geico | $83 | $171 | 13% |
| Amica | $89 | $187 | 6% |
| National General | $90 | $167 | 12% |
| State Farm | $95 | $189 | 3% |
Insurance costs can increase for older drivers after the age of 70-75, as insurers factor in age-related changes in reaction time. Completing a defensive driving course can earn seniors additional discounts of 5-10%, helping offset rate increases on fixed incomes.
Drivers with accidents, speeding tickets or DUIs pay higher premiums. State Farm offers the lowest rates for drivers with violations, charging 23-29% less than competitors.
Poor credit can significantly impact your car insurance rates. Insurers use credit scores to assess risk, and drivers with bad credit pay much higher rates. Nationwide is the most affordable company for drivers with bad credit, with premiums starting at $165 monthly. The company undercuts typical rates by 29 percent, saving drivers $1,974 annually compared to the national average.
For full coverage, Nationwide also offers the lowest rates at $164 monthly and Farmers provides competitive full coverage rates for bad credit drivers, with annual savings reaching $2,289.
| Nationwide | $165 | $164 | 29% |
| Farmers | $179 | $203 | 17% |
| GEICO | $183 | $195 | 18% |
| Travelers | $190 | $208 | 14% |
| Allstate | $214 | $227 | 4% |
In states where credit-based insurance scoring is legal, poor credit (scores below 580) will increase premiums by about 100%. California, Hawaii, and Massachusetts prohibit insurers from using credit scores in rate calculations. Compare quotes from multiple insurers to find the cheapest option for your credit situation.
Insurance companies price identical coverage anywhere from $1,200 to $8,500 differently depending on whether you're a teen driver, carry violations, own multiple vehicles, or have poor credit. The right carrier for your situation, combined with strategic discount stacking, delivers 20% to 40% lower premiums than advertised base rates, with regional insurers frequently undercutting national carriers by 28% to 34% in markets where they concentrate operations.
The cheapest car insurance company isn't determined by advertised rates or market share—it's determined by how well an insurer's business model and discount structure align with your specific driver profile. Young drivers save most with Travelers' youth-focused programs, high-risk drivers find lowest rates through State Farm's forgiving violation pricing, multi-car families benefit from GEICO's stackable household discounts, and poor credit drivers pay dramatically less through Nationwide's credit-light underwriting.
Clean Record | Travelers | $97 | $1,158 | Policy bundle (13%) + Safe driving (10%) | $75 |
Clean Record | GEICO | $98 | $1,177 | Multiple vehicles (25%) + Home policy (25%) | $73 |
Teen Driver | State Farm | $444 | $5,328 | Academic achievement (25%) + Steer Clear | $333 |
Teen Driver | Travelers | $466 | $5,592 | Student discount (25%) + IntelliDrive (30%) | $256 |
Young Adult | National General | $182 | $2,184 | Household policies combined | $155 |
Young Adult | GEICO | $207 | $2,484 | Student rate (15%) + Clean record (22%) | $153 |
Senior (60+) | National General | $167 | $2,004 | Mature driver course (10%) + Policy bundle (25%) | $125 |
Senior (60+) | GEICO | $171 | $2,052 | Safety course (10%) + Home/auto bundle (25%) | $128 |
High-Risk (DUI) | State Farm | $159 | $1,908 | Monitored driving (20%) + Policy bundle (17%) | $127 |
High-Risk (DUI) | Progressive | $161 | $1,932 | Snapshot safe driving program | $142 |
Poor Credit | Nationwide | $164 | $1,968 | SmartRide usage-based (40%) + Multi-policy | $115 |
Poor Credit | GEICO | $195 | $2,340 | Combined policies (25%) + Violation-free (22%) | $137 |
Descriptions of the Best Car Insurance Discounts
The cheapest car insurance company depends on your driver profile and coverage needs. Use these five strategies to identify which insurer offers the best rates for your situation:
Identify your category: teen, young adult, senior, military member, or high-risk driver. Then focus on companies that offer the cheapest rates in your demographic. Each insurer prices differently by driver type, so specialization matters.
Check if regional companies operate in your state. Regional insurers often offer rates 28 to 34 percent below national averages in specific markets. Availability varies by location, so the cheapest option may be regional rather than a national carrier. Â While regional carriers often offer lower pricing, they offer less coverage option and may not have easy digital claims processes.
Discount programs vary widely between insurers—State Farm emphasizes bundling discounts (10-25% off) for homeowners and households with multiple vehicles, while GEICO targets military members, federal employees, and low-mileage drivers. Common discounts include good student (15-25%), safe driver (20-30%), and multi-policy savings.
Get quotes for the coverage level you need. Some insurers offer better rates for minimum liability, while others have lower rates than the competition for full coverage. Use state comparison tables and MoneyGeek's car insurance calculator to estimate costs before requesting formal quotes.
The cheapest company changes by state. State Farm offers the lowest rates in 18 states, while GEICO leads in 16. Nationwide, Progressive, Farmers, Allstate and Travelers are lower priced specific regional markets. Use state comparison tables to identify which company performs best in your state.
Your deductible is the amount you pay out of pocket before your insurance coverage kicks in. Choosing a higher deductible reduces your monthly premium because you're assuming more of the financial risk. The trade-off is paying more if you have an accident. Raising your deductible from $500 to $1,000 will save you up to 20% on your policy.
The most economical car insurance company varies by individual circumstances, but GEICO offers competitive rates across multiple driver profiles. Â Travelers provides excellent value for full coverage at $97/month. Learning how to switch car insurance companies makes transitioning to a cheaper car insurance provider straightforward.
We answer common questions about saving money on car insurance to help you find the cheapest policy:
Finding affordable coverage is budget-friendly, but the absolute lowest price does not always provide the best value. Companies offering lower rates may cut corners when you need to file a claim.
Be aware of slow claims processing, limited customer service, and fewer coverage options. Your policy covers damage only up to your limit, meaning you remain responsible for anything beyond that amount in a serious accident. Remember that insurance fraud costs the average family between $400 and $700 per year in premiums.
Shopping around is the best way to find the cheapest car insurance company no matter where you live. GEICO has the lowest rates for most states and drivers. The most affordable insurer for you depends on your unique profile, so compare quotes from multiple cheap car insurance companies.
Minimum coverage policies meeting your state's requirements are typically the cheapest car insurance available. GEICO's minimum coverage rates start at $43 per month, though your actual rate depends on your location and driver profile.
Maine, Vermont and Idaho have the lowest car insurance rates due to lower population density, fewer claims and favorable regulations.
Bundling auto and home insurance with the same company provides 10% to 25% discounts, making it one of the most effective ways to reduce your car insurance rates.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
